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AHA2003/01/07ANAHEIM, CALIFORNIA- ANAHEIM HOUSING AUTHORITY MEETING JANUARY 7, 2003 171 The Anaheim Housing Authority met in regular session. Present: Chairman Curt Pringle and Authority Members Tom Tait, Shirley McCracken, Bob Hernandez and Richard Chavez. Staff Present: City Manager David Morgan, City Attorney Jack White, Secretary Sheryll Schroeder, Executive Director of Community Development, Elisa Stipkovich. A copy of the agenda for the meeting of the Anaheim Housing Authority was posted on January 4, 2003 at the City Hall outside bulletin boards. Chairman Pringle called the regular meeting of the Anaheim Housing Authority to order at 5:45 P.M. in the Council Chambers of the Anaheim City Hall, 200 South Anaheim Boulevard. ADDITIONS/DELETIONS TO THE AGENDA: None. PUBLIC COMMENTS: Alma Ramirez said she believed that the Housing Authority was mandated by the U.S. Department of Housing and Urban Development to forward its annual agency plan for specifying the Housing Authorities for properties, operations, financial resources for admissions, continued occupancy and the waiting list and needs assessment. She noted that this was to be done every year and that the Housing Authority was required to address the concerns to the community by having residents participate in the drafting stages of the plan. The Housing Authority was to have a series of public hearings for all residents to attend, she added, and that staff was to be informative and responsive to all residents. She asked where a final draft could be obtained for review. CONSENT CALENDAR ITEM 1 acted upon separately. Housing Authority Member McCracken moved approval of Housing Consent Calendar Item 2, seconded by Housing Authority Member Tait. Motion carried unanimously. 2. Approve minutes of the Housing Authority meeting held December 17, 2002. 137 Consider a resolution regarding its intention to issue tax-exempt obligations for Silver Pines Apartments. Executive Director Stipkovich said that was an inducement resolution, which was the first step in authorizing a developer to issue tax-exempt bond for affordable housing. The resolution was for $25 million and the developer would need to apply for the allocation from the State, she noted. The developer would also need to provide at least $17,500 to each of the units because of the program that they were applying for, she informed. She said that there was an issue regarding the percentage of affordable units and the recommendation of Community Development was based on their estimate of how many Iow income units were in the project for the people at 60 percent and below and she was concerned about displacement of the people over 60 percent and recommended that the project be split 70 percent affordable, 30 percent market. She noted that the resolution, as prepared, did not refer to a specific percentage of affordable housing ANAHEIM HOUSING AUTHORITY MINUTES JANUARY 7, 2003 PAGE 2 units and would accommodate going up to 100 percent, which was what the developer preferred. She said that the developer had requested 100 percent and felt that 100 percent affordable would make the project work. Community Development was concerned about the displacement of people above 60 percent, she added. Stan Erskovitz, Vice President with Fairfield Residential, spoke regarding the intention to issue bonds on the Silver Pines transaction. He said it was a 261-unit project located on north Loara Street and he proposed to acquire the property and conduct approximately $5.8 million of rehabilitation, which was about $22,500 per unit and then restrict 100 percent of the property to families at 50 percent and 60 percent of area median income. Ten percent of the units at 50 percent, and 90 percent of the units at 60 percent of the area median income, he said, and this project would have approximately $3.2 million in general partner equity invested in the property and a ground lease for $1 million. Tim Ray requested that 100 percent of the units be set aside for families earning less than 50 percent to 60 percent of the area median income and the proposal would require no City funds and none were requested for the project. The property had been built in 1965 and was badly in need of infrastructure upgrades such as a full plumbing retrofit for both gas and water, which would be completed as part of the rehabilitation, he explained. A new hot water heating system and a complete electrical fixture upgrade would be installed at the property, he noted. The planned rehabilitation would cure infrastructure problems as well as replacing and upgrading all new carpets, appliances, bathroom and kitchen flooring, tub and shower refinishing, kitchen cabinet upgrades and the exteriors would have new roofs, landscape upgrades and build out within the existing clubhouse, a resident service center that would include computers for services such as after school programs and English as a second language program. Chairman Pringle asked Mr. Ray if he had spoken to staff about the desire to have 100 percent of the property defined as affordable units and he responded that the original proposal requested 100 percent. Chairman Pringle asked if the item had gone through the Redevelopment and Housing Commission and Director Stipkovich said it had not been brought to them yet and that this was a very preliminary step. Chairman Pringle said that this was a step approving what the developer would present to the State within the next two weeks to obtain financing for the project. He said that part of staff's concern was the displacement issue of existing residents and he asked how new plumbing would be installed and new units refurbished and not move the residents out and he said he assumed that there was some degree of accommodation made for the residents. Mr. Erskovitz stated that the normal turn over at the property was approximately 35 percent to 45 percent per year on an ongoing basis and it had been Fairfield's policy throughout the United States in these situations to take vacant units to preliminarily rehabilitate them and then create corporate units, which existing tenants would be moved into while that portion of the property was done and then afterwards, the tenants would be moved back. It was done at Fairfield's expense and he said that they had budgeted for it and additional funds were set aside for anyone at the project who were over income who needed assistance should they desire to move. He said that Fairfield had also made a commitment that they would not force anyone who was over income to leave the property and if they desired to stay, and Fairfield could not work out something with them, they would be allowed to remain as tenants of the property. ANAHEIM HOUSING AUTHORITY MINUTES JANUARY 7, 2003 PAGE 3 Authority Member Chavez stated he had taken the time to visit the facility owned by Fairfield located in Tustin, which was approximately 150 to 160-units and was very well kept and a well- managed complex. He said that the need in the City for Iow-income housing was very large and many of the workers worked at minimum wage or just above minimum wage in the service industry and they were a vital part of the City and the Resort area. Authority Member Tait said he was glad to see that no one would be involuntarily removed and the 100 percent was good. Chairman Pringle asked if there was a requirement of the City to have a number of affordable housing units and Director Stipkovich said that there was. He asked if there were enough and she responded that there were not. He said if the additional 30 percent were recaptured on the project, there would be an additional 76-units of affordable housing stock and would add to the banking of units and reduce the need to build affordable housing in other places. He noted that was of value. Director Stipkovich said she was looking for policy direction and she noted that in the past, there had been a lot of concern about displacement, even on projects where Community Development felt that they would need to go 100 percent affordable. She said she wanted to make sure that there was a clear indication of exactly how the families that were over income would be handled and as long as there was a plan in writing, she said she was comfortable. Authority Member Hernandez noted that if the project were affordable housing, accessed through Section 8 housing or project based housing, he would be opposed to it. He said that there could be one person paying more per month than the other person and he said he believed that this created animosity and an inhospitable, disharmonious atmosphere in the apartment complex. Authority Member Tait moved to approve the resolution, amending to allow the 100 percent affordable provision, seconded by Authority Member Chavez. RESOLUTION NO. AHA2003-1 RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY regarding its intention to issue tax-exempt obligations for Silver Pines Apartments Roll call vote: Ayes - 5; Chairman Pringle, Authority Members Tait, McCracken, Hernandez and Chavez. Noes - 0. Motion carried. ADJOURNMENT: There being no further business, Authority Member McCracken moved to adjourn the Anaheim Housing Authority, seconded by Authority Member Chavez. Motion carried unanimously. The regular meeting of the Anaheim Housing Authority adjourned at 6:04 P.M. Sheryll Schroe~ler, CMC/AAE Secretary, Housing Authority